Conti confirms ‘Tires’ outlook, lowers ContiTech guidance

Hanover, Germany – Continental AG has confirmed its previously issued outlook for the performance for its Tires business, while revising down guidance for industrial and materials arm ContiTech.

The Tires group sector reported a strong third quarter, with earnings (EBITDA) up 9.4% year-on-year at €697 million, on 1.9% higher sales of €3.5 billion.

For the first three quarters, the division saw earnings increase 4.3% year-on-year to just under €2 billion, on sales 1.6% lower at €10.1 billion, Continental reported 11 Nov.

EBIT for the nine-month period increased 7.2% to €1.3 billion, with EBIT margin up at 14.5% compared to 13.3% reported for the same period last year.

Continental linked the gains to improved business in Europe, boosted by “encouraging early sales of winter tires.”

The German group maintained its previous forecast of full-year revenue of €13.5 billion to €14.5 billion for the segment, with EBIT margin of around 13.0 % - 14.0%.

On the other hand, ContiTech saw weak industrial demand in Europe and the Americas, which took a toll on earnings.

Over the third quarter, the division posted sales of €1.5 billion, down 9.9% year-n-year, while earnings by over 35% to €110 million.

For the first nine months of the year, sales fell 6.7% to €4.8 billion, while earnings declined 18.4% year-on-year to €421 million.

ContiTech's EBIT for the first three quarters decreased 30% to €198 million, with EBIT margin falling from 5.5% in 2023 to 4.1% this year.

For the full year, Continental has revised down ContiTech’s outlook to sales of €6.2-6.6 billion, down from earlier estimates of €6.6-7.0 billion.

Segment EBIT margin is expected to come in around 5.8% to 6.3%, down from previous guidance of 6.5% to 7.0%.